Sunday, January 21, 2018
Home BREAKING NEWS Bitcoin Price Analysis: The Bear Is Back

Bitcoin Price Analysis: The Bear Is Back

Bitcoin price sold off from a bull-trap at 09h00 UTC today. The move lower has changed the chart technical bias to bearish across the board. An escape route out of stronger decline still exists, but time is running out.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Bitcoin Price Analysis

Time of analysis: 14h00 UTC

Bitstamp 1-Hour Chart

Selection_20160329_003

From the analysis pages of xbt.social, earlier today:

Yesterday’s guestimate of a retracement to the 1-hour 200-period moving average has been exceeded. The market fell straight down into a test of the $400 zone across exchanges and suddenly the chart is back to looking bearish in the larger timeframes: 4-hour and 1-day.

Sunday’s fizzled launch failed to continue higher to resistance. The bulls had been accumulating for over a week and still only achieved a lower high. On the way down, today, there were still large buy orders being placed below the falling knife, but as always we cannot be sure whether those leveraged buy orders are intended to take profit or build long positions.

If the market trades price below $400 then long-term support will have been breached and additional decline will become a certainty. Additionally, the 1-week timeframe will also switch to bearish bias, with its downside support in the low $300s.

Additional decline, today, seems a stretch and the market is more likely to trace out its usual price pattern of a sideways shelf – below the 1-hour 200MA – before another attempt at $400 support occurs.

Holding above $400 is key, so ClassicCoin developers could retain some honor if they did the responsible thing sooner rather than later.

Summary

Bitcoin price reversed from a hopeful spike on Sunday, and after holding above $420 for most of Monday, continued lower today. Trading below $400 will open up decline targets at $360 and $320.

In the face of the fundamental insecurity of an ongoing populist threat to Bitcoin’s core value of consensus, the largest speculators will remain out of the market. Retail traders will be left to continue chasing the market around in the 2016 price range, and at the mercy of stop-hunts and similar exchange manipulation that becomes more prevalent in low liquidity.

Bitfinex Depth Chart and Buy/Sell Volume

Selection_20160329_004

Click here for the CCN.LA interactive bitcoin-price chart.

What do readers think? Please comment below.

This analysis is provided by xbt.social with a 3-hour delay. Read the full analysis here. Not a member? Join now and receive a $29 discount using the code CCN29.

Readers can follow Bitcoin price analysis updates every day on CCN.LA. A Global Economic Outlook report is published every Monday.

Disclaimer

The writer trades Bitcoin. Trade and Investment is risky. CCN.LA accepts no liability for losses incurred as a result of anything written in this Bitcoin price analysis report.

Bitcoin price charts from TradingView.
Image from Shutterstock.

mm

TheBitcoinNews.com – leading Bitcoin News source since 2012

Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. The information does not constitute investment advice or an offer to invest.

Read previous post:
Bitcoin Undervalued By Over $200, Investment Bank Report Finds

Investment bank and asset management firm Needham Company has released a report that concludes that bitcoin is currently undervalued by...

Close